Question: Please answer #4,5,7,9. Will be sure to leave thumbs up, thank you! Spot price is at top $1.1575 30-Sep_SPOT> $ 1.1575 / Euro U.S. Cents

Please answer #4,5,7,9. Will be sure to leave thumbs up, thank you! Spot price is at top $1.1575

Please answer #4,5,7,9. Will be sure to leave thumbs up, thank you!

30-Sep_SPOT> $ 1.1575 / Euro U.S. Cents / Euro US Cents / Euro EXERCISE CALL Option Premium PUT Option Premium EXERCISE PRICE November March November March PRICE 1.1300 3.85 0.65 1.1300 1.1350 1 1350 1.1400 3.10 0.90 1.1400 1.1450 1.85 0.50 1.1450 1.1500 1.50 2.40 0.65 1.25 1.1500 1.1550 1.17 0.85 1.1550 1.1600 0.90 1.80 1.05 1.65 1.1600 1.1650 0.62 1.35 1.1650 1.1700 0.50 1.35 1.65 2.15 1.1700 1.1750 0.35 2.00 1.1750 1.1800 0.95 2.75 1.1800 U.S. Cents / Euro A U.S. Cents / Euro ^ QUES. 1 - 9 ARE 3pts EACH Ques, below refer to data in Table above unless general Ques, +1. The premium of the MARCH PUT option with strike $1.17 now has time value = _?_/ Euro _2. The NOV. CALL option with strike $1.1550 right now has _?_intrinsie value each TRUE FALSE 3. Assume you own a PUT option with strike price that is exactly at the market. Then if the Spot price drops 1 cent per Euro, your PUT option becomes out of the money 4. In the Table, an MARCH PUT with strike price of $1. 1500 has _?_/ Euro of intrinsic value VE S. The MARCH CALL option with strike price = 51.16 has 2 time value in its premium. TRUE FALSE 6. For a PUT option's premium, its intrinsic value can be either a negative, O or positive value. TRUE FALSE 7. Currently, owning any of the PUT options shown with strike prices $1.160 and higher are 'in the money TRUE FALSE 8. When a CALL option is used to hedge currency risk, the owner of a CALL knows what the minimum value to buy the currency will be, if the CALL i exercised TRUE FALSE + 9. Assume that you own the MARCH PUT with strike $1.160. If tomorrow the Spot dropped -1 cent to $1.1475, other things equal, the March PUT premium should drop approx. 1 cent

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!